A managerial perspective on factors leading to failure in information technology projects

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Abstract

English: This research is based on data collected between April and May 2004
from 150 sample companies registered at the Johannesburg Stock
Exchange.
The study was organised into six chapters. The first chapter presents the
research design, a framework that guides the research from beginning to
end. Chapter two presents the theoretical background of project
management. Then follows the secondary data findings about IT projects
and the factors that lead to failure in IT projects. Chapter four presents
the research design and methodology follow this. In the fourth chapter
design issues such as data collection techniques, sample design and
research instruments implemented are described. Following this primary
data analysis is presented. Finally the study ends with the presentation
of findings, a conclusion and recommendations.
The research results show that
- the overall IT project performance has improved to higher degree
than was previously reported
- a high number of projects still exceed the budget, fall behind
schedule and fail to provide the expected benefit
- on average, 25 % of IT project work requires reworking
- human resource related (people related) problems are the first
predictors of the overall IT project failure, followed by project
management related problems
- the project managers lack the soft and managerial skills necessary
for managing IT projects
- despite their positive view of project management tools and
techniques, the project managers hardly use the project
management tools and techniques in practice.
- There was no statistically significant performance difference
between in-house and out sourced projects.
- Poor planning and poor business case were the foremost predictors
of failure according to the ranking of the project managers.
And the most important recommendations are:
- The alignment of IT project goals with overall business strategy and
goals,
- having a good start backed by the clear definition of requirements
and clear project definition,
- ensure a general consensus is reached on project success criteria,
- manage risk continuously,
- end-users should be involved for greater success,
- a sound project management methodology should be applied at all
times,
- project managers should be developed and empowered to
implement the project management methodology.

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